City Engineer Brett Grabau reviewed the only bid submitted for Preston’s 2019 Street and Utility Improvements at the city council’s August 23 meeting.
The bid submitted by Rochester Sand and Gravel was about $100,000 higher than the engineer’s estimate. Their bid is $443,376.65, of which, $418,873 represents the assessable portion of the project. The total project cost to do the improvements on Chatfield Ave. (from Kansas St. to 150 feet east of Winona St. NW), on a portion of Park Ln., on Cottage Grove Ave. SE, and Washington St. will be $582,618. The total also includes contingency funding, engineering costs, and work previously approved to be done by Legends Concrete, Inc. ($47,618).
The Washington St. portion of the project is not assessable and not part of the assessment project. The other three streets are assessable and the higher bid will be reflected in the amount assessed to property owners. The city’s policy is to assess 40%. City Administrator Joe Hoffman did not recommend changing the assessment percent for this project because of the higher than expected bid. Mayor Kurt Reicks agreed that the assessments should not be offset for this one project.
Hoffman said the city has the funds available to pay for the project as bid.
There was some discussion about delaying the project to see if a lower bid may be submitted in the spring. Grabau said the high bid is a result of the time of year, the number of contractors, the amount of work being done (extreme demand), and the current economy. If the economy hits a bump causing less work to be done, then the bid could be more favorable. He said the bid has been reviewed and is in order. Grabau said he didn’t see contractors’ bids coming down much in the near future. He didn’t think the bid was unreasonable; it is what it is going to be.
The possibility of eliminating a portion of the work (one street area) was also discussed. Councilwoman Holly Zuck said if one area was pulled off, it doesn’t mean the contract would be reduced by that whole amount. We need to look at this project and what needs to be done for the community.
The resolution accepting the bid for the 2019 work was approved as presented. Councilmen Robert Maust and David Collett voted no.
Other business in brief
•The first draft of the 2020 budget summary was presented. The preliminary numbers show a 5.05% increase in the levy or $47,574. The budget will be discussed at the next meeting and the preliminary budget will be brought to the council for consideration at the second meeting in September. Current numbers include a 2.5% wage increase and an estimated increase in health insurance costs, extra costs for elections, and the purchase of iPads for council members.
•Two applicants had been interviewed for the full-time police officer position. The recommendation to hire current part-time officer Gideon Prudoehl was approved.
•A request to close Franklin St. NW (intersection with North St. NW) and Spring St. NW for Sunday, September 22 from noon to 9 p.m. for the annual neighborhood block party was approved.
•The next city council meeting will be on Wednesday, September 4 at 6 p.m.